Q2 2023 Endeavor Group Holdings Inc Earnings Call
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Good afternoon. Thank you for attending the Endeavour Group Holdings second quarter 2023 earnings call. My name is Matt and I'll be your moderator for today's call all lines have been muted during the presentation portion of the call up an opportunity for questions and answers at the end.
If you'd like to ask a question. Please press star one on your telephone keypad I would now like to pass the conference over to our host James Marsh. James. Please go ahead, good afternoon, and welcome to Endeavour's second quarter 2023 earnings call.
Short while ago, we issued a press release, which you can view on our Investor Relations site Investor got endeavor co Dot com.
Mmm reconciliations.
<unk> between gap and non-GAAP metrics for all of our reported results can be found in our press release issued today as well as in the non-GAAP financial information posted in our our website.
With that I'll turn it over to our C E O Arya manual.
Thanks, James and good afternoon, everyone.
We delivered solid results in the second quarter, reflecting ongoing demand for premium content and live events.
Before I share highlights from our four segments I'd like to note two deals in particular.
First we closed our sale of IMG Academy at an enterprise value of $1.25 billion.
As previously announced we will now commence our share repurchase and dividend payment initiatives in the third quarter second having completed antitrust reviews for our proposed combination of UFC and WWE. We are closing in on the launch of TKO Group Holdings, which we currently expect in mid to late September .
As we have discussed exposure to TKO via are 51% controlling ownership offers compelling upside for endeavour planning is underway to begin maximising revenue and cost synergies immediately upon closing and I'm bullish on the TKO outlook in the progress of the W. W. E media renewal discussions.
We will get further clarity on those initiatives in due course.
Now turning to highlights within our segments.
And one sports properties UFC 287 in Miami drew 19000 fans and generate a ticket sales of $11.9 million, making it the highest grossing event ever at the Cafe a center in sixth highest in UFC history.
We're also excited about ufc's upcoming return to Sydney, Australia after securing a four year 16 million Australian dollars investment from the New South Wales government to host multiple events inclusive of sight fees.
The first of those events UFC 293 will take place. This September just ahead of our new multi year agreement that will make Foxtel group the exclusive distributor of all UFC pay per views in Australia, beginning in 2024.
Within our events experiences and writes segment.
Are owned events got off to a strong start in the second quarter of note. The Madrid Open tennis tournament now in its second year as part of Endeavour set a new attendance record with more than 325000 fans across 12 days.
Our taste of London Food Festival, Similarly set an attendance record attracting more than 56000 guests across five days.
At on location, we're seeing strong demand for upcoming live events tick.
Tickets have already sold out for the 2023 Air Lingus College football classic between Notre Dame and Navy, which is expected to draw nearly 40000 fans from the U S to Ireland Rip.
Reportedly this event is projected to set a world record for the largest number of Americans traveling internationally for a single sporting event.
Additionally on locations early ticket and sweet sales for Superbowl 58 in Las Vegas are off to a record start <unk>.
And with exactly one year to go to Paris, 2024 were optimistic about the anticipation and demand we're seeing in the lead up to the games.
At IMG media, we wrapped another successful Premier League season, producing live coverage and distributing content to millions of international fans in more than 180 countries.
Also IMG media was chosen to produce the Bbc's highly anticipated coverage of the FIFA Women's World Cup, which is now underway in Australia and New Zealand.
<unk> is managing the incoming live match feed studio presentation and highlight programming for the Bbc's 33 fixtures throughout the tournament.
Within our sports data and technology segment.
<unk> arena secured worldwide data and streaming rights for the National Women's Soccer League.
And it opened bet following the successful launch of their online Sportsbook partnership with OPEC Greece's leading gaming company opened that will soon be expanding into their retail network of more than 4000 shops in 20000 terminals.
This significant development demonstrates our focus on pursuing durable growth within the sport bedding ecosystem and capitalizing on opportunities and newly emerging sports betting markets globally.
Finally within our representation segment.
Despite the beginning of the WGNA strike within the quarter WMA verticals outside of film and television performed well.
Broadway is coming back strong comedy tours are selling out and we're having our best year for music touring.
And country music in particular more than 100 W. E clients participated in nearly 200 performance slots throughout CMA first week in June .
Also in the quarter WMA celebrated many awards and nominations for clients, including at the Tony Awards, where the creative team behind Kimberly Akimbo took on five awards, including best musical making it the seventh musical from WMA talent to win in this category over the last 10 years.
More recently more than 110, WMA clients were involved and Emmy nominated projects, including a combined 40 nominations for succession and the bear.
And as a sign of continued momentum for WMA sports, we had five first round and three lottery picks in the NBA draft. The most of any agency and represent the world's number one tennis players eager should be on tech who won at Roland Garros.
And Carlos <unk>, who took home his first Wimbledon title last month.
Wm Me also recently completed several tucking in acquisitions that deepened and broadened our representation capabilities within several growing categories.
And music Wmba acquired Red 11 to further scale exposition in country music and touring and and books Wmba acquired Washington D. C based literary agency Ross Yoon expanding our literary in commercial nonfiction offering.
As just one example of the opportunity. This presents Ross Yoon represents Kai bird author of the book American Prometheus, which inspired the hugely successful film Oppenheimer that was written directed and produced by our client Christopher Nolan and features clients, including Matt Damon Robert Downey Junior and Kenneth Branagh.
These acquisitions, along with our capabilities and expertise across the endeavor flywheel further enhance our ability to build holistic businesses around our WMA clients.
Before I turn the call over to Jason I'd like to close with some thoughts on the strikes.
I've been through many strikes over my more than 35 years of representing actors writers and creative of all types, whose livelihoods depend upon the entertainment economy.
Time, and again, our industry has navigated change and now is no exception as we adjust to new distribution models and technologies.
There are real issues to work through and we continue to stand with our clients advocate on their behalf and push for a resolution that protects their creative and commercial interests.
With that I will now turn things over to Jason to walk you through the quarter in detail.
Thanks, and good afternoon, everyone.
I'll start by walking you through our financial results for the second quarter all of them provide some caller around what we're seeing each of our operating segments.
All comparisons will be to the second quarter of 2022.
Warner ended June 30th 2023, we generated 1.4, 306 billing and consolidated revenue up $123.7 million or 9.4% net income for the quarter was $666.5 million compared to $42.2 million.
Changing that income was largely driven by the game from the show the IMG Academy, which we completed at the end of June .
Adjusted EBITDA for the quarter was $304.9 million down $1.4 million.
Now I will walk you through each of our segments.
Our own Schwartz property segment generated revenue of $341 million in the quarter.
$8.2 million or 2.5%.
While the segments adjusted EBITDA for the quarter was $179.2 million up a $2 million or 11.1% as.
As a reminder, the prior year quarter included $30 million of revenue related to Diamond Baseball Holdings, which we sold in September of 2022.
Revenue growth in the segment was primarily driven by increased scribe event revenue at USC.
Largely from two more events held outside of the apex.
Higher media rights fees, and sponsorships and an increase in commercial pay per view.
And the quarter, we kind of knew multiyear rights agreement with molar and Indonesia.
Increase our aggregate AAV remains approximately 100% over prior deals since we began tracking and Q2 of 2021.
At P B R.
We showed 11 event revenue records.
Putting eight sold out performances.
We kind of long term partnership expenses with area in Pendleton, Whiskey, and we <unk> new partnerships with bass pro shops for Pbr's team theories and unleash the Beast series.
Now turning to events experiences and writes the.
The segment recorded revenue of $591 $1 million in the quarter up $23.3 million or $4, 1%.
Segment, adjusted EBITDA was $76 $6 million down 16 million or 17.3% Rev.
Revenue growth was driven by record ticket sales at the Madrid open.
The inclusion of Barrett Jackson.
Increase media production revenue at IMG media.
And to increase revenue at IMG Academy revenue growth was partially offset by decreases in on locations music business as well as decreases at endeavors screaming.
Segment adjusted EBITDA for the quarter was impacted by on location to ongoing IOC investment, which began in the third quarter of last year and is inclusive of personnel marketing and technology costs.
Clients have endeavors streaming due to run off of legacy deals and changes in client spending trends.
Challenging comparison for the Masters in N C. Double a final four given weather and match ups and lastly, timing related shifts and certain sponsorship deal signing for soccer clubs, where we represent which we expect to close in Q3.
The decline of segment adjusted EBITDA was partially offset by growth in our events, maybe production and IMG Academy businesses.
Moving onto a representation segment.
Revenue was $381 $1 million up $23.2 million or 6.5%, while adjusted EBITDA was 107 $1 million down for $1 million or 3.7%.
The increase in segment revenue was primarily attributed to the contents deliveries within our non scripted content production business as well as growth at our 106 silver 90 business.
The increase was partially offset by the early stage impact of the Writers' strike, which had an impact on segment adjusted EBITDA in the quarter.
Now turning to our sports stated in technology segment.
Revenue was $136 million up $70.2 million or 116.3%.
While adjusted EBITDA was $13.7 million down $1.8 million or 11.7 per cent.
Revenue growth in this segment was attributed to the addition of open pet, which we acquired in Q3 of last year as well as growth in the existing better data contracts at IMG Arena.
Segment, adjusted EBITDA, which benefited from the inclusion of open pet was offset by increased data cause it IMG arena in advance of the sales cycle.
As we've previously noted these new data costs continue to create temporary pressure on segment margins, which we anticipated.
We continue to expect to monetize these data rates in the upcoming sales cycle.
Performance and a quarter remains consistent with our previous commentary of the segment being back half loaded for the year.
Moving onto our capital structure.
We ended the quarter with 5.11 billion in debt and $1.62 billion in cash.
<unk> I'll tell you in approximately $3.49 billion in net debt.
Net leverage was 3.06 times at quarter end.
In July we completed our voluntary paid on a $50 million of debt.
Where does this month, we expect to commence our share repurchase of up to $300 million a class a common stock.
A quarter and we also intend to distribute our first quarterly dividend in an amount up to $25 million to holders of our class a common stock and our other equity holders at endeavor operating company now.
Now related to our outlook. This is the first time in 63 years, both W. G E and Sag after are striking simultaneously.
We currently estimate the strikes will adversely impact our revenue by approximately $25 million per month on average, which largely flows through to adjusted EBITDA. However, without knowing the scope duration and shape of the eventual recovery, especially given that the sack. After strike is a relatively new development, having taken effect only on July 14th.
It would be premature to speculate the aggregate dollar impact for the balance of the calendar year.
Accordingly, we encourage investors natural enter previously communicated annual guidance estimates we plan to provide further updates on the impacts of the strike during our queue three earnings call and we expect to update new guidance targets. During the ordinary course of future earnings announcements as at Wendy's labor disputes are resolved and we have greater visibility.
Beyond the impact of the strike or other businesses and aggregate remain on track with our adjusted EBITDA expectations.
Despite near term disruptions related to the strike we continue to be focused on executing our strategy.
With that I'll turn it back to you James.
Great. Thanks, Jason Operator, we open up the call for questions place.
Absolutely if you would like to ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to remove that question. Please press star followed by two again to ask you a question Press Star one as a reminder, if you're using a speaker phone. Please remember to pick up your handset before asking your question. We will pause here briefly is.
Questions are registered.
The first question is for the line of John how to live with you B S. You wanted to know.
Okay, great. Thanks, guys I guess first just a housekeeping questions.
Jason on your latest comments, there I mean, why withdrawal guidance versus.
Update the guidance for for the strike I guess unless somebody else has changed in your business.
Yeah sure John first of all as you know we provide annual guidance not monthly.
Currently forecasting our annual guidance is complicated.
Situation, where it is largely unprecedented.
Added complexity of the recent development with the Sag Astro strike.
Unknown duration and hard to figure out the ultimate shape recovery. So at this time, we believe it's not prudent to try to forecast our business on an annual basis, just too many moving parts based on what we know today.
That said, we are providing transparency by giving our best estimate of a current monthly impact.
So you have to input to make your own assumptions on the ultimate impact with the strike.
Excluding the strike our business are on track.
Two two results are just ahead of street expectations and year to date, we've done roughly $3 billion in revenue in over $600 million adjusted EBITDA.
And as we said adjusted EBITDA for the for the rest of the business is in line with our previous expectations.
And we'll also pointed to update more in Q3, as we know more will share more with everybody.
Yeah, I think John it's Mark.
I just remind you I mean last quarter Ari was very specific on hey, we're getting our arms around this writers' strike, we're going to come on the call next quarter, and we are going to be able to quantify what kind of hit and how long lasting that's going to be <unk>.
Now as we're getting ready to do that Bang just three weeks ago, we get hit with the Sag Aftra strike right, which is something as Jason said when we haven't seen in 60 plus years. So this is a once in a generation event. So we need some time to get our arms around that and give you guys a kind of clarity and transparency you are looking for.
In the meantime, you're gonna get monthly guidance, which we've just giving you here and just to underscore the other part of your question no. There is nothing to see here. If you will I mean, the business is doing well, we're tracking well in all of our other businesses. There is no watch out points. If you will even W. On me outside of the strike is doing really.
Well sports is doing well music as I'm sure you've read about is on fire comedies, great Broadway is doing well our speakers Bureau, our folks are getting booked right left for speaking engagements, but we're being prudent tier because remember the second half of the year has some of our big events some of our big headline.
Assets Winter Wonderland is our biggest.
That doesn't take place till December we have a counter mcgregor.
Fight that we budgeted for in the second half we have four freeze events and I will just remind you when it comes to sports that in technology and IMG media were loaded in the back half on both of those businesses. So again, good shape, but still a lot of wood wood the chap in the last six months.
Okay, great. So just to make sure I understand what you're saying there Jason the $25 million a month did last for six months sort sort of the rest of the year effectively the guidance goes from 1425.
In the neighborhood of $1.1 billion in EBITDA for the years that I got that right.
So John what we're not going to give guidance for the year, but.
What I would say is you know.
Given what we know now.
Noting that the Sag aftra striker less than 30 days old and based on our best estimates.
The impact of the strike given what the business is performance of data through the first six months and the fact that the rest of our business is generally align I definitely that's a reasonable way to look at the business and to look at our numbers that being said will of course update in Q3 as well to give any changes to that view based on actual for.
Q3 impact with the striking anything we're seeing different but I think that's a reasonable basis to look at the business, including up or down a preview event that these strikes get settled earlier than most people anticipate correct.
So as I say math class you would have done in a.
[laughter], Thanks, sorry, and now my my my actual question.
Sort of halfway through earnings here and the weakness in the linear television ecosystem is definitely front and center and I guess.
<unk> I mean, any evidence that you're seeing that that weakness is translating that sort of less appetite for for sports rights. Thanks.
Well, here's what I say.
We continue to see a live sports as a long term driver of demand despite near term.
Issues regarding linear channels.
Scarcity value of professional sports leagues teams franchises as you know.
Is true rising consumer engagement in viewership.
Huh.
They are spending on experiences in sports betting adjustments consistency on delivering appointment viewing ahead of can't Miss moments.
So.
Legacy broadcasters still represents the lion's share of sports rights and revenues with Big Tech companies and S slides senior.
Seen as newcomers despite significant investment in the space.
We just saw maxing they might have a sports tier same thing with Peacock clearly the ecosystem is entering a generational change.
And we continue to feel life's force for Maine.
And to the right. We also think that the properties like UFC and WWE our premium content.
Appointment television and feel great about the value of those rights.
Alright, Thanks, John Operator next question please.
Thank you for your question.
Questions from the line have been Swinburne with Morgan Stanley is now open.
Thanks, Good afternoon guys.
I think Jason you mentioned the buyback, Oregon was already starting later this month I'm just wondering if you could give us a little more specificity any reason why it can't start after you guys finish reporting this evening.
And then I guess are you thinking about anything on the cost side at WMA I mean, I think Jason said.
The larger the revenue hit will largely flow through to EBITDA, which suggests the cost structure is pretty fixed I'm. Just wondering is this sort of strike continues to move along and you know how you.
You guys are thinking about.
The expense.
Side of the equation.
And then if I can just ask one more I apologize for John aspiration I figured his fur [laughter] what are you thinking for capital allocation.
These this TKO deal closes that businesses generates massive free cash flow rapidly delevers and it's gonna close in the not too distant future can share with us sort of posts closed strategy around use of cash flow and capital allocation I may have to go back through that we might have to go through it back through this.
We'll try if we miss anything that is now.
As far as the buyback we need to be in an open window. So.
We need a few days into that open window before we can execute it so.
We will just be a little bit before we can start that program. So that's more just technical.
Got it in nature.
As far as cost structure.
Address some of the cost structure already as you can imagine.
Some of the variable costs.
So when when we gave that 25 number largely flowing through that sort of already indicated.
Took into account what we've been able to do on the cost side, we're saying largely flow through because we do think there is potentially an opportunity to get a little bit more as time goes on but keep in mind you know there's a lot of aspects of the agency that are still operating very well has already said info in full force. So we want to make sure we're not doing anything.
Impacting those sort of those sides of the business as well.
But we would never I mean, obviously been never waste a crisis right.
We've been through this before with Covid. We are tied on all the controls efficiencies is the word of the moment and whether it comes to <unk>.
Pruning our portfolio or just freezing hiring and see any you can bet, we're lifting all levers.
And the third question what was the third question.
T K O capital allocation, given the cash flow and the leverage there what do you think you might do with all of that capital potential.
Oh.
It's been where right now we're just focused on closing the transaction, we're not going to speculate but yes, we know it's going to be a highly calculated business with.
With the good leveraged profiling at that point in time will address and make the the rate capital allocation decisions on behalf TKO will make the right capital allocation decisions and I'd be happy to TKO at the time.
Thank you. Thanks then.
Operator next question. Please thank you for your question.
The next question is from the line of cooking and marrow with Evercore iPhone. If you wanted to know.
Good afternoon, and thanks for taking my question, maybe switching gears a bit there's a lot of focus on TKO, but I was actually hoping to dig in a bit on the non T. K O part of the company because looking at the stock today these assets seem particularly disconnected with other public or private.
Valuations, so already or Mark can you share your views on what gets you. Most excited about the outlook for these remaining businesses and then Jason I know, there's a lot going on here and I don't expect guidance, but is there anything you could share on the financial profile you see a head for the non TKO group, particularly around free cash flow. Thanks.
So.
I would say the following.
We operate in a large global and fast growing marketplace.
I think the combined tan.
Sports Entertainment music live events premium experiences roughly about $500 billion.
Endeavour operates in the most durable layers of sports and entertainment value chain.
Our management team has a long history.
Operating in an ever changing sports and entertainment industry.
I would just say to you we look at our business, we sold the production business for $1 billion, we sold.
The Academy for one too I think.
I don't believe that anybody value of those assets.
At that but with those numbers, we hear the speculation regarding caring and CIA.
And our representations segment.
Were larger than that even with the acquisition that they made of ICM. So, let's just say that's close to the evaluation, they're talking about just that portion alone.
The representation segment is is greater than that.
And then I think when people look at location IMG media.
And our.
Bedding business.
It's a significant business the remaining assets and hopefully they will now begin to realize and be able to look at those without you'll see in there and we'll get the value.
Accretion that we think those remaining assets dessert, yes cut gun.
Leaving here it.
We we struggle frankly with how undervalued Edr is these days for exactly the reasons are we talking about we're excited primarily because we have some terrific writes renewals in front of us both in representing WWE for the time being <unk>.
And owning UFC and the synergy upside that will exist both cost and revenue at TKL I would say secondly, we see meaningful growth and events and experiences, especially when you consider the Olympics in Paris for 2024.
On top of that we.
We see increased shareholder returns.
As leverage drops below three times after the TKO launch.
And then finally the demand for content the demand for premium content, which is where we play premium content UFC WWE all the entertainment programming that we package.
That is not going anywhere anytime soon so owning or representing it.
We sit at the salaries, you know and we find ourselves in a very attractive space. So with those that kind of financial profile and that that leverage being <unk>.
Less than three times after the <unk> launch we're excited about the prospects for endeavor.
And on the free cash flow.
Q1 call, we're going to revisit free cash flow for the company in 2024, given a lot of the anomalies in 2023, but what I will reiterate what we did Hudson. Prior is Ah, we certainly expect the remaining assets of UDR to be.
Free cash flow positive on a go forward basis.
Understood. Thanks, everyone.
Okay.
Thank you for your questions.
Next question is from the line of Brian craft with Deutsche Bank is open.
Hi, Thanks, Good afternoon, I guess, a follow up question on the stripes. It if the writers and actors are back to work.
Time before the end of the year, how should we think about the impact on 2024 will the negative impact in 2023 translate more or less into a similar positive impact in 2024 is that production shifts into next year.
Thanks.
Here's what I would say having gone through multiple strikes.
I think it will be months not days.
Until the strike kinda get settled.
And things start back up.
So.
Things that are were shutdown that were filming will start up and then there'll be the pre production and then going into production. So you're talking months not days until that pipeline when it and again, we do not know et cetera. So it's complicated.
That's kind of.
Since the sixties, it's unlike any.
Strike that's happened in a long time, but.
It's going to be months, so, let's just say it's in the back half.
We'll have more updates as Jason said.
Couple earlier questions and then we'll give you kind of where we think is it.
Begin at the beginning of 24, maybe to the tail end of twenty-three we do not know.
And Brian .
To our point and it will take a while to ramp up.
We live in the comp business.
So we look forward to this getting wrapped up.
Our clients having.
Having better economics with each of their deals us prospering from a return to normal business with better economics in 2004, so that bodes for a strong picture and I would just stay on top of that non.
Non scripted while we haven't seen it yet because the studios had been bank roll in cash were just beginning to see now a ramp up and orders for non scripted. So that will also an order to our benefit 24, here's the one thing that you can take away from this.
Unlike most negotiations at all of us to call through the.
The one answer that we do know this strike will come to an end.
Both these deals will come to an end I don't know when but they definitely well.
One time and temporary yes.
Great. Thanks, Brian .
Oh, Thank you the next.
Question. Please.
Thank you for your question. The next question is from the line Oh, Steven <unk> with Goldman Sachs and you wanted to open.
Thanks. Good afternoon, maybe you could just expand them to demand for non scripted antiques. The extent you are seeing an uptick in demand and production or orders from studios.
And any commentary on maybe I can offset some of the headwinds and the representation segment from from the striker in the next quarter. So.
That would be helpful.
Great. Thanks, even yeah look we're leaning in in a big way.
Already mentioned endeavor content, which.
Obviously, we sold for a big number in a big multiple we're now leaning in on that same strategy for non scripted so I'm sure you've seen some headlines some investments we've made an acquisition we made with our asylum entertainment. We think non scripted is is a real strong play for us and we're we're ramping up and.
That area in terms of the studios and ordering I think everybody thought Oh strike, they're shutting everything down now Sag Aftra strike there for sure shutting that they're going to start ordering game shows and reality announced gifted like crazy, while frankly, they didn't do that out of the gate, they're bankrolling cash and that's why you see some of this cash flow a little better with each of these earnings ripped.
<unk>, we're now seeing for the first time this week that they are starting to ramp up which means they see a prolonged strike and they need to fill the pipe with something so that's beginning to take place and I would say in the shape and form it's taking place they're actually coming back in ordering shows that they passed on prior to so.
Look we hope will be in a good place you where the strikes over the <unk> ramp up against production gets going pipeline gets filled but oh, yeah. They made all these non scripted commitment and by the way we happen to have investments in ownership and companies that will benefit us on both sides.
Got it thanks for that and then maybe just one on.
Maybe just one more if I could on the sports data and technology segment for Jason I think I heard you say that the current there's gonna be backing loaded I wasn't sure if you meant.
Thats sequential growth off of two keys revenue performance.
No we basically met them.
GA the EBITDA in the segment is waited in Q3 and Q4 for the year.
Got it thank you.
I'll tell ya.
David <unk>.
Clearly you saw on the news today with ESPN, and ESPN button Barstool and pen entertainment.
We're not the only ones that think sports betting is a major part of the ecosystem.
Alright. Thank you operator next question please.
Thank you for your question. The next question is from the line of Jessica <unk> early with both the securities can let us know okay.
It's kind of a three part or on content going back to the strength.
You are reporting at the tail end of of most companies. So.
Everybody's talking about content of becoming more efficient.
You think that the industry is struggling structurally changing how they were thinking about content spend.
Going forward and you are seeing an increase in third party licensing can mitigate some of this.
Instead of its impact for some of these entities and then.
It seems pretty obvious but unless it is a global strike or strikes that a lot of this will move off shore.
A lot of the production how does that impact your business and I guess, just a small thing but oriented mark like how do you plan to split your time between the two companies posted TKO.
Record, Jessica four questions, yet, but here's what I would have a senior.
We don't see any pullback I mean, we're in the strike now.
In content spend.
There's been many indications do programming.
And it gets you and maintains your subs sports does the same thing.
Netflix and other people have been buying steps internationally always theirs.
I don't believe that yet if there's more efficiency I think.
There is six to seven buyers with Sony.
Paramount also on the movie side and.
Direct to consumer business.
So.
My perspective.
Content spend has continued it's actually increase hopefully it doesn't strike does not hurt the theatrical business.
But again as I said in the past they've got to continue the pipeline, even though the linear slowing down and cable is going down they gotta.
Continue for their <unk> strategy and now the theatrical business with all these movies coming out there's still perform they're picking up they've always picked up shows from international territory, a lot of Netflix doing that so we feel we feel good about that and I would say to you is one of our strength is that we're a global company and.
So when you say kind of we have our eyes all over the world one for sports, but also pronounce scripted businesses marks on a bunch of our acquisitions. So we're covered in that space on a go forward basis.
Okay next question.
Thank you for your question.
Next question is for the line of David Joyce with Sea Port Research.
Thank you given that one of the opportunity sets for the appending T. K O creation is on the National front in terms of building up a footprint.
I was wondering what the international opportunities or for representation.
What <unk> what.
What what might you be doing in terms of organic footprint build in terms of age.
Agencies or through acquisitions, and what's the gestation period for acquisitions organic builds getting up to the representation division norms. Thanks.
Yes, David.
Look I think this kind of dovetails, a little bit with Jessica question in terms of localized content.
It just goes hand in hand with the demand for content that we're not just seeing in this country. We are seeing globally and we are geographically spaced to take advantage of that so we are in 38 different countries, meaning WMD IMG endeavor as offices and boots on the ground and 38 different countries from Japan.
<unk> to <unk>.
<unk>, Hi, Beijing, Singapore, obviously, all the way across Europe into Australia, New Zealand I mean, we're covered everywhere in the way to sell shows and the way to signing new clients and celebrities and actors and writers. It's of course be there and have your ear to the ground, knowing who's hot what's trending where the zaikai.
Is going so we see that as a major area of growth for us in fact, you'll probably see us open up more offices globally, where we see opportunity and content everywhere from India to Korea.
That's David next question operator.
Thank you for your question next.
Next question is from the line of Tom Champion with Piper Sandler There's no open.
Hi, good afternoon, so a little bit of uncertainty and the business related to the strike but.
If you could just talk about the consumer appetite to spend on on experiences yeah. Just overall view of the consumer and then maybe.
Maybe if you could talk a little bit about sports data and technology I think you referenced in new deal in Greece, and Mark that you've talked in the past about <unk>.
<unk> traditional venues your domestically what what's what's the opportunity that we shouldn't be watching for in in that part of the business. Thank you.
Yeah, I mean look Arianna I can can.
Jump on each other here with regard to consumer events and experiences I mean, well it gets hot right. We've got a whole new world of what the definition of going back to work is right. Five day work week is largely dead and not coming back anytime soon so folks out there whether you are in the U S are you are you.
Youth in China, they have more time on their hands and they are looking for more ways, whether they have the money or it's credit to spend their discretionary time.
And income and we're seeing that across the board, we represent the WWE and they're reporting sellouts every which way. They go UFC, obviously, you've seen the trend line, there and and the ticket sales were getting me record ticket sales for our last five events of the UFC Madrid open <unk>.
Biggest attendants, we've ever had and highest ticket yield Miami open because the tendons, we've ever had and highest ticket yield even superbowl 58. We just finished we just hit the benchmark of $100 million for the Las Vegas, Superbowl, which is upcoming we just hit the 100 million Mark I mean ways.
Off and people are pre ordering tickets just to make sure they get a seat at these premium events and it does go back to the premium and I would just tell you. Finally in August we've got our Air Lingus College Football Classic, which is in Ireland is Notre Dame vs. Navy and it's completely sold out and on location is going to do record performance in terms of premium.
<unk> so.
We couldn't feel better festival the business strong music touring business strong everybody wants to play our food festivals pace of London was it was a record number for us. So we don't see that that's falling away anytime soon and on the sport that in technology.
Oh I would tell you there is.
This is this is a natural part of the content ecosystem sports betting sports viewing sports participation Merch Commerce, you see what's happening with fanatics and the way. They are they are expanding their business and getting into sports betting as well, it's become something especially the young people want to.
Do as their viewing multitask and getting engaged in a much deeper and meaningful way and we feel great about it are launching in Greece with Oh path and opened that has been a monster success for just a few weeks out and of course, we're all looking our chops with the fact that Brazil is now legalized gambling and that's going to open up that whole region.
To us so sports that in technology, you see some of the other sports betting companies and the way, they're jumping and gaining genius sports radar their stock prices and rice and we feel good about.
The opportunity to really layer in there.
Thanks, Tom next question <unk>, operator, thanks, a lot.
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